Do You Need Commercial Auto Insurance for a Rideshare or Delivery Vehicle? 

In recent years, rideshare apps and delivery services have become ample opportunities for vehicle owners to explore new careers or subsidize primary income. But whether you’ve started driving full-time or just pick up a few shifts when you have time, working for these services may require navigating a complicated insurance landscape. Specifically, you want to avoid mistakenly believing that personal auto insurance is sufficient.

What Type of Insurance Do I Need?

If you help ferry passengers or deliver food and other orders using your personal vehicle, you might think that your standard auto insurance policy is covering you while you’re on the job. However, that’s a potentially costly misconception. Most personal auto insurance coverage excludes incidents occurring while a vehicle is used for business purposes. As such, if you only have such a policy, you’re likely underinsured while working.

You may not need specific commercial auto insurance in these situations, but you will need some form of enhanced coverage. Fortunately, many insurance carriers have started offering rideshare and delivery driver insurance and endorsements specifically for these situations.

Do Employers Offer Coverage?

In some cases, rideshare and delivery services, such as Uber and Lyft, may offer limited coverage for drivers while they’re on the job. However, these options are often insufficient. For example, rideshare drivers might be covered while they have a passenger in the car, but if they’re idling on the side of the road or in a parking lot while waiting for another trip to be scheduled, incidents might not be covered. This would mean that accidents, criminal acts and other incidents occurring during these times would lead to significant out-of-pocket costs for drivers, as personal auto claims would likely be declined.

We’re Here to Help

At Blackburn Insurance Agency, Inc. in Grand Prairie, Texas, we can help rideshare and delivery drivers understand their coverage needs and secure appropriate policies or endorsements. Contact us today to learn more or compare personalized quotes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.